BALTIMORE, Nov. 2 /PRNewswire-FirstCall/ -- As a part of its efforts to
help people better plan for the college education of a child, grandchild,
friend, or other family member, T. Rowe Price has launched an interactive and
easy to use Saving for College Personal Guide on its web site. The guide can
be accessed for free at http://www.troweprice.com/personalguides.
The Guide uses a step-by-step approach to help users understand and
consider the various college savings options -- including 529 plans, Education
Savings Accounts, UGMA/UTMA accounts, and taxable accounts -- and determine an
investment approach that suits their time horizon and risk tolerance. The
Guide also enables users to test various scenarios, create, save and print
Personalized Action Plans, and sign up for email reminders that encourage them
to return to the Guide periodically to update their Plans.
"With average tuition costs for college rising faster than inflation and
wages, it has become important that families start saving early for college,"
said Stuart Ritter, financial planner at T. Rowe Price. "Although there's no
single college savings option that's perfect for everyone, for people who want
to understand their choices, estimate college tuition in the future, and
create a Personalized Action Plan, the Guide is a great way to get started."
Through different interactive sections, the Guide enables individuals and
families to learn:
* Potential Future Cost of College: Factoring in the years until college
starts, investors can estimate future college expenses by applying a
chosen inflation rate to the current costs at a specific school or the
national averages for public or private institutions.
* Potential Accumulated Savings: By entering monthly contributions and any
initial investments, as well as an anticipated rate of return and their
state and federal tax rates, investors can estimate the amount that
would potentially be available for college in several types of accounts,
including 529 plans, Education Savings Accounts, UGMA/UTMA accounts, and
taxable accounts. In addition, investors can choose to follow a pathway
that enables them to estimate how much they would need to invest to
reach their college savings goal.
* Most Appropriate Account Types to Consider: Based on the level of
importance investors place on seven different factors, the interactive
Guide suggests which account type might be most suitable. Considerations
include desire for tax-advantaged growth, control of withdrawals,
financial aid impact, ability to change beneficiary, importance to gift
and/or estate planning strategy, and availability of 529 plan state tax
deductions. A summary table details the characteristics of the factors
as they relate to each account type and helps investors learn about the
advantages and disadvantages of the different options.
For investors who have determined an investment goal and would like to
open an account with T. Rowe Price, the Guide facilitates the process by
providing links to online applications for each account type.
Founded in 1937, Baltimore-based T. Rowe Price (Nasdaq: TROW) is a global
investment management firm with $257.6 billion in assets under management as
of September 30, 2005. The firm provides a broad array of mutual funds,
sub-advisory services, and separate account management for individual and
institutional investors, retirement plans, and financial intermediaries. The
company also offers a variety of sophisticated investment planning and
guidance tools. T. Rowe Price's disciplined, risk-aware investment approach
focuses on diversification, style consistency, and fundamental research.
SOURCE T. Rowe Price
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Related links:
http://www.troweprice.com
http://www.troweprice.com/personalguides
CONTACT:
Rajiv Vyas, +1-410-345-6559 or Brian Lewbart,
+1-410-345-2242, both of T. Rowe Price
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